Russia and economic war by the west #3

flamming_python wrote: But still, we see the negative effects this situation leads to too, with the rouble's fall and necessitation of interest rate hikes.

A high interest rate is bad if you have a high credit load. But it's good if you have savings. My savings exceed my credit load.

The problem is that the economy does not operate like the budget of any individual. Business borrowing is not private borrowing.
If companies had to wait until they accumulated enough savings to retool and redesign products and change production capacity,
they would be driven out of the market by companies that could borrow, invest, collect revenue and retire the loans in short order.
In a closed system without such competition it translates into long delays in innovation and adaptation to market needs.

The same applies to buying a house. Not taking out a mortgage is retarded since the house prices increase faster than any savings
rate of individuals. You will never buy a house unless the market is collapsing. Such collapses don't happen often enough to matter.

So it's nice that bank interest in Russia is high for savings, but the economy is not merely composed of individuals with bank savings.
It is composed of corporations and institutional consumers as well.

flamming_python wrote:

The record low unemployment is an indicator of overheating and a shortage of work force too. The Russian economy has expanded faster than its ability to attract workforce to the country

Which sounds like a nice problem to have, and yeah it's better than record unemployment and stagnation. But still, we see the negative effects this situation leads to too, with the rouble's fall and necessitation of interest rate hikes.

I would say worker shortage rather than overheating. There is no cheap credit injection that would be causing overheating and bubble formation. The high interest rate would
be damping the economy but it is a difficult balance between suppression of investment to facilitate adaptation to the new conditions and prevention of overheating. The current
rate is in the suppression regime in my opinion.

We often hear about automation removing jobs. Russia needs automation to offset the worker shortage.

Kanada tries and fails to act like a great imperial power.

https://www.rt.com/news/581774-kalas-karis-estonia-ukraine/

Russia hawk in hot water over husband’s business dealings

A firm co-owned by the spouse of Estonian PM Kaja Kallas reportedly kept working with Russia despite EU sanctions

Estonian President Alar Karis has demanded explanations from the Baltic state’s prime minister, Kaja Kallas, after local media reports claimed that her husband was doing business with Russia despite EU sanctions imposed over the Ukraine conflict.

On Wednesday, the broadcaster ERR reported that transport firm Stark Logistics, which is partially owned by Kallas’ husband Arvo Hallik, continued moving some cargo in and out of Russia after the fighting between Moscow and Kiev broke out in February 2022. The company’s CEO Kristjan Kraag told the outlet that it had redirected most of its activities to Poland and Scandinavia during the conflict, but acknowledged that a small number of hauls to Russia still took place.

“It’s true that I am married to Arvo Hallik, but I have no idea about his business,” the Prine Minister claimed.

but I have no idea about his business

She learned a lot from Sleepy Joe Biden. 

These limitrophe retard statelets have bet their future on mighty NATzO but ultimately will have f*cked themselves over.   The EU
is not going to be there to trickle welfare to prop them up for centuries to come.   Pissing at the biggest economy in Europe and getting bigger
all the time while sucking off a past use-by date empire in terminal decline is some epic brain fail.   But that is what ethnic hate and
chauvinism gets you, short-circuit spasm-think.

Scorpius wrote:

flamming_python wrote: But still, we see the negative effects this situation leads to too, with the rouble's fall and necessitation of interest rate hikes.

A high interest rate is bad if you have a high credit load. But it's good if you have savings. My savings exceed my credit load.

Mine don't, but thankfully I have rouble devaluation to save me

higurashihougi wrote:https://www.rt.com/news/581774-kalas-karis-estonia-ukraine/

Russia hawk in hot water over husband’s business dealings

A firm co-owned by the spouse of Estonian PM Kaja Kallas reportedly kept working with Russia despite EU sanctions

Estonian President Alar Karis has demanded explanations from the Baltic state’s prime minister, Kaja Kallas, after local media reports claimed that her husband was doing business with Russia despite EU sanctions imposed over the Ukraine conflict.  

On Wednesday, the broadcaster ERR reported that transport firm Stark Logistics, which is partially owned by Kallas’ husband Arvo Hallik, continued moving some cargo in and out of Russia after the fighting between Moscow and Kiev broke out in February 2022. The company’s CEO Kristjan Kraag told the outlet that it had redirected most of its activities to Poland and Scandinavia during the conflict, but acknowledged that a small number of hauls to Russia still took place.    

“It’s true that I am married to Arvo Hallik, but I have no idea about his business,” the Prine Minister claimed.

In fairness you can't blame her or her husband. When you live in a truck stop between Russia and Germany masquerading as a country its really fucking hard to not get in contact with Russian money.

In fairness you can't blame her or her husband. When you live in a truck stop between Russia and Germany masquerading as a country its really fucking hard to not get in contact with Russian money.

No sympathy at all... when you are leading the charge to get everyone to break ties with the invaders of Europe and it turns out your family make good money on those monsters and you have no interest in stopping making that money for your own principles then she is a two faced liar and a bitch... there are plenty of others who would prefer to keep trading with Russia and Russians and she blocked them and shamed them and now it seems her husband is doing the same thing...

sepheronx wrote:Why, you got loads of money in other denominations?

I have read somewhere that a ton of companies in Russia are having to jack up wages not because of inflation, but because they are trying to keep workers due to shortage of skilled labor.

No, although at my previous job I did have a salary indexed to a dollar amount, so every devaluation benefited me. Those were the days

It's more the fact that devaluations lead to inflation and indexation of payments, salaries, etc... while the amount you owe in roubles remains the same regardless.

Closing off the offshore racket has to be priority number one for Russia.

What this video completely misses is a suspension of Double Tax Agreements (DTA) and Tax Evasion treaties with all "unfriendly" countries (38) at the beginning of August that cancels withholding of tax provisions, property income tax relief, dividends, interest, royalties and it came in effect immediately. That was very important first step of closing the loophole of tax avoidance. Obviously, Dubai and Hong Kong remain an option, which are already being used by Russian companies.
Re-registration to Russia of companies started in 2018, i believe, but results so far were mixed, at best. Russia wants to create, so called, domestic of shore zones ( Kaliningrad and Vladivostok), but many domestic industrialists are strongly opposing it and some industry unions even threatened with Constitutional Court of Russia lawsuit, with a good reasoning, i think. It would basically put companies registered in newfound domestic offshore in a privileged position when compared to others.

Which just shows us all what bastards CEOs of companies everywhere are like... you could hardly consider Russia a high tax country yet companies which are Russian companies who do most of their business in Russia shift their HQs to foreign countries to reduce the amount of Tax they have to pay to do business...

Those companies are scum... they should triple tax them.

https://rg.ru/2023/08/25/rossijskie-knigoizdateli-pochti-polnostiu-pereshli-na-otechestvennuiu-bumagu.html

Russian book publishers have almost completely switched to domestic paper

A year and a half after the ban on the supply of coated paper to Russia, introduced by the European Union, book publishers almost completely switched to domestic, the Ministry of Digital Development reported, RBC writes.

It is noted that the industry in 95% of cases chooses Russian raw materials. At the same time, according to the largest publishing houses, domestic paper turned out to be cheaper and better than imported paper. However, its range is still small.

So, Eksmo-AST confirmed that if in 2022 they still printed books on imported paper from the remaining stocks, then from 2023 the group completely switched to coated paper produced in Russia. Alpina reported that they buy paper in Russia and Belarus. The publishing house has no supplies of materials from China and Europe.

Before the imposition of sanctions, coated paper was imported to Russia from Finland, Germany and Sweden. Its imports amounted to 80-85%.

are having to jack up wages not because of inflation,

Could this be the reason why Shoigu was in North-Korea? Labor shortages?
Some 150 or 200.000 workers from the DPRK working in the construction, agricultural and manufacturing sectors could really help.

NATzO has made it easier to remove parasites afflicting Russia's economy.

Hole wrote:

are having to jack up wages not because of inflation,

Could this be the reason why Shoigu was in North-Korea? Labor shortages?
Some 150 or 200.000 workers from the DPRK working in the construction, agricultural and manufacturing sectors could really help.

Better to have North Korean labor than the central stans bringing their tribalism and religious extremism with them.

Broski wrote:
Better to have North Korean labor than the central stans bringing their tribalism and religious extremism with them.

Yep. Totally agree. Muslims have always been a problem wherever they are across the world.

But, I hope that Russia will put up a special department that will deal with this problem. For example, Russia will allow immigration of people from Central Asia But they will have to be Russified by force. This policy will have to be incorporated into law. The Russification process will involve Three important pillars. 1) having them change their name to Russian, 2) speak the Russian language as their main language and 3) adopt Russian Orthodoxy as their religion.

With these 3 conditions in place, the new immigrants and their future generations will be successfully Russified and it will be difficult for their descendants to reverse this process.

This will also pave the way for Russia's eventual liberation of all of Central Asia back to Russian control.

It is not about muslims per se. Some of the stans are completely nonfunctional states, where central government doesn't control whole country and all kinds of extremists run provinces. Along with religious fundamentalism, those people are mostly severely uneducated, which relegates them to doing lowest skilled manual labor jobs.

Hole wrote:

are having to jack up wages not because of inflation,

Could this be the reason why Shoigu was in North-Korea? Labor shortages?
Some 150 or 200.000 workers from the DPRK working in the construction, agricultural and manufacturing sectors could really help.

It is possible.
NK exports a lot of labor, even to the EU.
A shady business nobody will openly talk about

Banana republic level corruption. But at least it is being cleaned up.

And although we are talking about private capital, the success of the Ministry of Finance diplomacy can hardly be overestimated. After all, quite recently it was out of the question to unblock the currency stuck in Western banks.

Russian Finance Minister Anton Siluanov estimated the total amount of Russian entrepreneurs' money hanging abroad at 1.5 trillion rubles. In Russia, according to official data, there are about half as many funds owned by foreigners in type C accounts. European commissioners claim that Russia has “taken” much more from the West: at least $150 billion through asset freezes, and if you add dividends to this, the amount is even more serious.

In the West, apparently, they began to realize that it would not be possible to intimidate Russia with any sanctions. In an effort to annoy our country, the EU has lost long-term assets, which are now simply transferred to other owners (you have to be content with depositary receipts for shares of Russian companies). The EU, of course, is aware that as soon as they decide to take away our property abroad, they can do the same with the assets of their owners.

We keep the money of foreigners who have decided to close their business in Russia and sell packages of securities of their companies on accounts of type “C”. The money of our companies abroad was also not allowed to be taken out. But our answer was softer: we allowed foreigners to invest hung money in Russian government bonds, buy stakes in Russian enterprises, pay taxes (if they still have production facilities in the Russian Federation). Another thing is that, unfortunately, not everyone took advantage of this opportunity, showing their temper, and already regret it.

Representatives of the Western world have long been accustomed to living by their own rules: to deal with Russian companies only because they provide a good inflow of capital into the European economy. By the way, for the time being, this was not hindered by the foreign economic policy pursued by the Central Bank and the economic bloc of the government. The money earned here was freely transferred abroad under the guise of dividends. The profits received by foreigners in Russia were expected by American banks, and the state bought securities of the US government debt with "extra" petrodollars. Liberals assured that the whole world lives by such rules. It's just that business and the state are looking for where it is better and more profitable to place their capital, which fits into the rules of the free market. If no one interferes with the free circulation of currency, then foreigners themselves will carry their money into our economy.

FULL ARTICLE: https://www-stoletie-ru.translate.goog/tekuschiiy_moment/konec_naivnoj_epohi_986.htm?utm_source=finobzor.ru&_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

The phrase "In God We Trust" is printed on US Money but I have always believed that Most Americans have a strong love of money and it really means that Americans put their trust in money not God.  It is really ingrained in US society, culture and its economic system and foreign policy.  It uses the dollar as a weapon against other countries that sent financial independence.


https://theconversation.com/the-complex-history-of-in-god-we-trust-91117


https://time.com/4179685/in-god-we-trust-currency-history/



https://www.thecollector.com/in-god-we-trust-money-roosevelt/